The Expected Return-Beta Relationship of the CAPM Is Graphically Represented

question 35

Multiple Choice

The expected return-beta relationship of the CAPM is graphically represented by

• A) the security-market line.
• B) the capital-market line.
• C) the capital-allocation line.
• D) the efficient frontier with a risk-free asset.
• E) the efficient frontier without a risk-free asset.

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Definitions:

Secondary Conditioner

A stimulus that becomes reinforcing through its association with a primary reinforcer.

Discriminative Response

A behavior that is specifically elicited by certain stimuli and not others, indicating the ability to differentiate between them.

Unconditioned Response

An innate, reflexive response to an unconditioned stimulus that occurs naturally without the need for prior learning.

Salivation

The secretion of saliva in the mouth, which can occur due to various stimuli including taste, smell, or thoughts of food.